Yet, most Americans have worries about the future of the program.
KEY FINDINGS:
- 57% worry that Social Security will not be available throughout the entirety of their retirement
- 53% say they do not know much about Social Security or how it will fit into their retirement plan
- Only 22% of those with a financial professional have talked to them about their worry that Social Security will run out of money
MINNEAPOLIS –Aug. 27, 2024 – While Social Security is a significant part of a retirement strategy, the majority of Americans lack knowledge about the benefit, according to the 2024 Annual Retirement Study* from Allianz Life Insurance Company of North America (Allianz Life).
More than half (53%) of Americans say they do not know much about Social Security or how it will fit into their retirement plan. Younger Americans are more likely to have knowledge gaps about Social Security – 60% of millennials and 51% of Gen Xers say they do not know much about Social Security or how it will fit into their retirement plan. Still 23% of boomers who are all over age 60 say they do not know either.
Hispanic respondents (63%) were more likely than Asian/Asian American (56%), white (54%), and Black/African Americans (47%) to say they do not know much about Social Security or how it will fit into their retirement plan.
“It’s worrisome that so many Americans don’t know how Social Security will fit into their retirement strategy,” said Kelly LaVigne, VP of consumer insights, Allianz Life. “Social Security benefits are a foundational part of a retirement strategy. This is a guaranteed source of income for a lifetime that increases with cost-of living adjustments and is tax advantaged. There are decisions to be made around Social Security that will affect you for the rest of your life – making the right choice is important.”
Knowledge gaps about Social Security
Most Americans (53%) say they are not sure when it will be best for them to start taking Social Security. While millennials (57%) and Gen Xers (56%) may have time to learn more, this lack of knowledge continues with boomers. Nearly one in four (23%) of boomers still say they are not sure.
Just 44% of Americans say they have a plan for how they will take Social Security in retirement. Boomers (71%) are more likely than Gen Xers (27%) and millennials (30%) to say they have a Social Security plan.
Americans also have unrealistic expectations for their transition into retirement. Even though many younger Americans plan to work past Social Security retirement age, few do. While 41% of millennials and 38% of Gen Xers say they plan to work past Social Security retirement age, just 28% of boomers say they are working past Social Security retirement age.
Worry about the future of Social Security
Americans worry that changes to their Social Security benefits will happen in the future. Most Americans (57%) worry that Social Security will not be available throughout their retirement. Younger Americans worry about the future of the benefit. Nearly three in four Gen Xers (73%) and 63% of millennials worry that Social Security will not be available throughout the entirety of their retirement. Just 42% of boomers said the same.
“Regardless of what happens in the future, Social Security cannot be your entire retirement strategy,” LaVigne says. “For many Americans to retire comfortably, they need additional income along with their Social Security benefit to maintain their standard of living.”
Still, few have discussed these concerns with a financial professional. Just 22% of Americans who have a financial professional say they have talked to them about their worry that Social Security will run out of money. And only 17% have talked to their financial professional about maximizing their Social Security income in retirement.
Yet, the majority of Americans (60%) would like to talk with a financial professional about their concern that Social Security will not be available throughout the entirety of their retirement. In particular, 81% of millennials and 60% of Gen Xers would like to have this discussion. Just 35% of boomers said the same.
*Allianz Life conducted the 2024 Annual Retirement Study online survey in February and March 2024 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k+. The study included an oversample of respondents who identified as Black/African American (416 responses); Hispanic (398 responses); Asian/Asian American (366 responses).
